20-HB1890/SB1942 – Helton/Briggs

Bill Description

This bill prohibits a pharmacy benefit manager, or any third party that makes payment for the drugs, from discriminating against the following with respect to a patient eligible to receive drugs subject to a federal drug discount agreement between the secretary of health and human services and a drug manufacturer:
(1) A 340B entity (described below) in a manner that prevents or interferes with the patient's choice to receive those drugs from the 340B entity;
(2) A pharmacy participating in a health plan as an entity authorized to participate under a federal drug discount program in a manner that prevents or interferes with the patient's choice to receive those drugs from the pharmacy; or
(3) A 340B entity regarding reimbursement for pharmacy-dispensed drugs by reimbursing at a rate lower than that paid for the same drug to pharmacies that are not 340B entities. This bill also prohibits a pharmacy benefit manager from assessing any fee or other adjustment upon the 340B entity, or exclude a 340B pharmacy from the pharmacy benefit manager's or third party's pharmacy network, on the basis that the 340B entity participates in the drug discount program.
A "340B entity" is an entity participating in the federal 340B drug discount program, including the entity's pharmacy or pharmacies, or any pharmacy or pharmacies contracted with the entity to dispense drugs purchased through the program.
This bill states that it creates a private cause of action for a pharmacy or 340B entity against a pharmacy benefit manager or third party who violates this bill.

TLRC Position

We fully support but are not scoring this bill. We are crediting the sponsors under leadership.

TLRC Observed Process

Passed unanimously through HOUSE LIFE & HEALTH INSURANCE SUBCOMMITTEE and HOUSE INSURANCE: Scheduled for Calendar and Rules; likely to pass on a floor vote, but on 6/9 the SENATE COMMERCE AND LABOR COMMITTEE sent it to Summer Study which means it has to be completely refiled in 2021.

Vote Result: Passed